RUTHLESS NUMBERS – Practically all car manufacturers are throwing themselves body, soul and – above all – investments into the electric sector which, however, is often still very far from being profitable. An emblematic case is that of Fordwhich in the first quarter of 2024 Model ethe division electric vehicles of the blue oval, he lost 1.3 billion of dollars, approximately double what was lost in the same period of the previous year. If faced with such large numbers one risks remaining disoriented, suffice it to say that for each of the 10,000 electric vehicles sold in the first three months of the year (-20% compared to 2023), Ford has lost on average $132,000.
> In the photos, Ford’s electric cars: from above Mach-E, F150 Lightning and Explorer.
PRICE WARS AND INVESTMENTS – The loss, they explain from Ford, is due to the fact that the car manufacturer had to lower the price of its electric models in response to changing market conditions, while allocating additional funds to continue the research and development. In general, revenue from electric vehicles brought in a total of 100 million dollars in the first 3 months of 2024, a value 84% lower than that of 2023. prediction for the rest of the year it is no better: in 2023 the company lost 4.7 billion in its electric division ($40,525 for each car sold), for 2024 a red by 5 billion of dollars. Losses covered by the brand’s other divisions: Ford Pro, which mainly sells commercial internal combustion models, recorded a profit of $3 billion, while Ford Blue (the division dedicated to traditional cars) achieved sales of $21 billion , albeit down 13% compared to the previous year.
LOOK TO THE FUTURE – Obviously the Ford hopes that today’s losses will result in a stronger position in the electric field next years, as much of that money has been invested in the development of next-generation electric vehicles. The American company has in fact stated that its intention is that, at this moment, the prices of electric vehicles cover the actual production costs, without thinking about all the research and development expenses. Despite the current losses, Ford CEO Jim Farley has reassured investorsarguing that the company is making changes in its electric vehicle business and that their next generation will allow Ford to be profitable in that field as well.
